Cerulli: Minority of Advisors Make Majority of VA Sales

One problem is that insurers are trying to offer rich features while limiting risk by restricting the types of investments a VA advisor and investor can use together with the guarantees, the analysts say.

“As insurance companies water down investments, advisors are showing an increased interest in portfolio construction techniques such as non-correlating assets or tactical allocation,” the analysts say. “This watering-down effect by insurance companies is counter to how advisors are investing their clients’ other money, and this, in turn, is discouraging the industry’s most sophisticated advisors from looking at the VA industry.”

- Allison Bell

Other variable annuity coverage from National Underwriter Life & Health:

• A Year to Remember
• Annuity Data: Fixed Annuities; Variable Annuity Guaranteed Living Benefits
• IRI: Annuity Sales Rise
• LIMRA: VAs Sizzled
• Kehrer-LIMRA: Banks Sell More Variable Annuities